Question: Please help I have asked before and nobody has been able to help. I need all the red boxes corrected. Question 17 of 19 2.09




Please help I have asked before and nobody has been able to help. I need all the red boxes corrected.
Question 17 of 19 2.09 /3.5 E View Policies Show Attempt History Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Larkspur Leasing Company and Crane Company, a lessee. May 1, 2020 $15,138.16 $4,000 5 years Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2020 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate 10 years $50,000 $68,000 8 % 8 % The collectibility of the lease payments by Larkspur is probable. Click here to view factor tables. (a) Your answer is correct. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, eg. 5,275.15.) Lease receivable at commencement 68,000 e Textbook and Media List of Accounts Attempts: 3 of 4 used Using multiple attempts will impact your score. 50% score reduction after attempt 3 (b) Your answer is correct. Prepare a lease amortization schedule for Larkspur for the 5-year lease term. (Round answers to 2 decimal places, eg. 5,275.15.) LARKSPUR LEASING COMPANY (Lessor) Lease Amortization Schedule Interest on Lease Recovery of Lease Receivable Receivable nnual Lease Payment Plus BPO Lease Receivable $ 68,000 15138.16 0 15138.16 52,861.84 15138.16 4228.95 10909.21 41,952.63 15138.16 3356.21 11781.95 30,170.68 15138.16 2413.65 12724.51 17.446.17 15138.16 1395.69 13742.47 3,703.71 4000 296.30 3703.70 0 $ 79690 $ 11690.71 $ 68000 eTextbook and Media List of Accounts Attempts: 2 of 4 used Using multiple attempts will impact your score. 50% score reduction after attempt 3 (c) Your answer is partially correct. Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2020 and 2021. The lessor's accounting period ends on December 31. Reversing entries are not used by Larkspur. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, eg. 5,275.15. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Debit Credit Right-of-Use Asset 68,000 Lease Liability 68,000 Interest Expense $2,819.3 Interest Payable $2,819.3 (To record the lease) Depreciation Expense 4,533.33 Accumulated Depreciation Equipment 4,533.33 (To record lease payment) Interest Payable 2,819.3 Interest Expense 2,819.3 10 IA JONNAIO Interest Expense 4.228.95 Lease Liability 10.909.21 Cash 15.138.16 Interest Expense 2,237.47 Interest Payable 2.237.47
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